Greymouth this morning confirmed that it had purchased over 90% of the shares in Bridge Petroleum, for an undisclosed sum.
It said the acquisition of the Bridge Petroleum shares represented the first step in recapitalising the private company so it could meet imminent seismic, drilling and contract commitments.
Bridge’s interests include 33.33% stakes in the onshore Taranaki Radnor mining licence PMP 38157 and adjacent exploration licence PEP 38751, both of which it operates.
Greymouth chief executive Mark Dunphy said his company looked forward to working with management and Bridge shareholders so that Bridge can develop as an independent New Zealand-owned and managed company.
Bridge executive director Kevin Johnson told PetroleumNews.net he was pleased to have Greymouth take control of Bridge.
He said Greymouth was currently one of the most successful onshore explorers in New Zealand – with last year’s Turangi gas-condensate find further north of Radnor.
“We are introducing a cornerstone shareholder with the necessary financial and technical capabilities to progress further exploration and, hopefully, production,” he said.
Johnson said he and the other Bridge founding partner, Denver-based Ed Davies, were selling their shares in the company. Davies would concentrate on running Bridge Resources Corporation, a new Canadian-listed company active in the North Sea, but
Johnson would remain as executive director.
Davies and Johnson, both former Westech executives, set up Bridge Petroleum in April 2002 and it has since had a chequered history.
In 2004, Bridge issued shares to New Zealand private equity investors, in advance of an aborted initial public offering. Foreign shareholders then became the majority owners.
Late last month, Energy Corporation of America – which operates in New Zealand as Westech Energy – said it was selling its 33.33% interest in Radnor and PEP 38751, as well as the nearby small fields of Surrey and Windsor, to Greymouth for an undisclosed sum.
Until that acquisition, Westech, Bridge and TAG Oil had equal shares in the Radnor lease with TAG acting as operator. Now Greymouth is set to become the major stakeholder via its Westech and Bridge holdings.
Last year, TAG Oil drilled the unsuccessful Radnor-1A sidetrack, which failed to flow commercial quantities of gas from the McKee sands. Bridge participated in that operation, although Westech did not.
Today Greymouth said some uncertainties existed concerning aspects of TAG’s operations, its participation in Radnor, and various joint venture agreements.
Greymouth said Bridge Petroleum’s objective now was to resolve those TAG uncertainties so that forward seismic and drilling operations could proceed.
